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CUSTOMER RELATIONSHIPMANAGEMENT - Trường Đại học Thương mại
I. Overview of VP Bank: 1.1. Introducing VP Bank and Its Products: a. Introduce about VP Bank: b. Products and Services:
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CUSTOMER RELATIONSHIPMANAGEMENT - Trường Đại học Thương mại
I. Overview of VP Bank: 1.1. Introducing VP Bank and Its Products: a. Introduce about VP Bank: b. Products and Services:
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12:44 18/1/25 Ggwp - accounting Group Assignment CUSTOMER RELATIONSHIP MANAGEMENT
Subject: Analyze and evaluate CRM strategies of VP Bank Group: 2 Class: CN19 – NTA
Course code: 25100BMKT0617E Tutors:
Ms. Nguyen Thi Thuy Duong Hanoi, August 2024 Contents 4 about:blank 1/23 12:44 18/1/25 Ggwp - accounting
I. Overview of VP Bank:........................................................................................ 4
1.1. Introducing VP Bank and Its Products:...............................................................4
a. Introduce about VP Bank:....................................................................................4
b. Products and Services:..........................................................................................4
1.2 Customer Segments and Characteristics of Target Customers:.........................5
a. Retail Customers:.................................................................................................. 5
b. Corporate Customers:........................................................................................... 5
c. High-Net-Worth Individuals (HNWIs):...............................................................5
d. Digital Natives:...................................................................................................... 5
e. Characteristics of Target Customers:..................................................................5
II. Analyze the current status of VPbank's CRM activities:...............................6
2.1. Current CRM Strategies at VPBank:..................................................................6
a. CRM Strategies Used by VPBank:.......................................................................6
b. Detailed Analysis of Each Strategy:.....................................................................7
2.2. Evaluate the current status of VPbank's CRM activities:................................10
a. The CRM strategy of VPBank offers several advantages and strengths over
other banks in the industry:....................................................................................10
b. Some indicators directly affect VP bank's CRM performance........................10
c. The remaining limitations in VPBank's CRM strategy include:.....................14
III. Solution and proposal for Vpbank’s CRM activities:.................................15
3.1 Solutions for VP Bank's CRM activities in the future:......................................15
a. Strengthening the CRM Vision:.........................................................................15
b. Fostering a Culture of Customer Orientation:..................................................15
c. Aligning Organizational Processes:....................................................................16
d. Leveraging Data and Technology for Personalized CRM:..............................16
e. Effective Implementation of CRM:...................................................................17
3.2. Proposals for VP Bank's CRM Activities in the Future:..................................18
a. Collaboration with Potential Partners:..............................................................18
b. Expanding and Adjusting Existing Policies:.....................................................18 2 about:blank 2/23 12:44 18/1/25 Ggwp - accounting MEMBERS OF GROUP Number Name Student code Tasks 19 Vũ Hoàng (Leader) 22K660023 11 Phùng Phương Anh 21K660015 12 Phạm Thùy Dịu 22K660015 13 Phạm Thùy Dương 21K660031 14 Nguyễn Như Đạt 21K660023 15 Nguyễn Hương Giang 21K660033 16 Nguyễn Lam Giang 21K660032 17 Nguyễn Diệu Hà 22K660018 18 Bùi Thu Hoài 22K660022 20 Nguyễn Quang Huy 22K660027 3 about:blank 3/23 12:44 18/1/25 Ggwp - accounting I. Overview of VP Bank:
1.1. Introducing VP Bank and Its Products: a. Introduce about VP Bank:
- VP Bank (Vietnam Prosperity Joint Stock Commercial Bank), established in 1993, is
one of the leading commercial banks in Vietnam. With a focus on innovation and
customer-centric services, VP Bank has grown to become a prominent financial institution in the country.
With a mission to enhance customer experiences and meet the diverse needs of its
clients, VP Bank continues to grow its market presence, serving a wide array of
customer segments, from individual consumers to large corporations and high-net-
worth individuals. The bank's focus on customer satisfaction, combined with its strong
financial foundation, positions it as a trusted financial partner in Vietnam. •
History of Formation and Development
1993: VPBank was established as Vietnam Joint Stock Commercial Bank for Non-State Enterprises.
2006: VPBank changed its name to Vietnam Prosperity Joint Stock Commercial Bank.
2012-2017: The run-up period with many improvements and strong development.
2018-2022: The breakthrough period, VPBank became one of the banks with
the largest charter capital in Vietnam.
2023: VPBank continued to expand and develop, aiming to be in the Top 3
leading banks in Vietnam and the Top 100 largest banks in Asia • Current Leadership
VPBank has an experienced and talented leadership team, including: o
Chairman of the Board of Directors: Mr. Ngo Chi Dung o
General Director: Mr. Nguyen Duc Vinh o
Deputy General Directors: Ms. Nguyen Thi Thu Huong, Mr. Nguyen Thanh Binh, and many other leaders • Vision and Mission
VPBank aims to become a powerful financial institution, contributing to the
sustainable development and prosperity of the country and the community. The Bank
is committed to providing modern financial products and services, meeting the diverse
needs of individual and corporate customers.
VPBank constantly innovates and improves to adapt to new trends and opportunities,
while affirming its position in the international financial market b. Products and Services: - Retail Banking:
+ Personal Loans: Unsecured loans, auto loans, mortgage loans, and education loans.
+ Savings Accounts: Regular savings, fixed-term deposits, and children's savings.
+nCards: Debit cards, credit cards, and prepaid cards with various features and benefits.
+ Digital Banking: Online banking, mobile banking, and electronic payment solutions. 4 about:blank 4/23 12:44 18/1/25 Ggwp - accounting - Corporate Banking:
+ Corporate Loans: Working capital loans, trade finance, and project finance.
+ Cash Management: Payment services, payroll management, and cash flow optimization.
Investment Banking: Mergers and acquisitions advisory, capital markets, and investment products. - Wealth Management:
+ Investment Products: Mutual funds, bonds, and structured products.
+ Private Banking: Tailored financial services for high-net-worth individuals,
including portfolio management and estate planning. - SME Banking:
+ Business Loans: Short-term and long-term financing for small and medium enterprises.
+ Trade Services: Export-import financing, letters of credit, and guarantees.
+ Advisory Services: Business consulting and financial planning for SMEs.
1.2 Customer Segments and Characteristics of Target Customers: a. Retail Customers:
- General Consumers: Individuals seeking personal banking services, including
savings, loans, and credit cards.
- Mass Affluent Segment: Customers with significant disposable income looking for
wealth management and investment products.
- Millennials and Young Professionals: Tech-savvy individuals who prefer digital
banking solutions, online payments, and lifestyle-oriented banking products. b. Corporate Customers:
- Large Enterprises: Businesses requiring complex financial solutions, including
project finance, trade finance, and corporate advisory services.
- Small and Medium Enterprises (SMEs): Companies needing access to business
loans, cash management services, and trade support to grow and expand their operations.
c. High-Net-Worth Individuals (HNWIs):
- Affluent Individuals: Customers with high investable assets seeking personalized
financial advice, private banking services, and tailored investment products.
- Business Owners and Entrepreneurs: Individuals looking for comprehensive
financial services, including succession planning, wealth management, and business advisory. d. Digital Natives:
- Tech-Savvy Customers: A growing segment of customers who prefer digital
banking services, such as mobile banking, online transactions, and instant access to
financial products and services. 5 about:blank 5/23 12:44 18/1/25 Ggwp - accounting
e. Characteristics of Target Customers:
- Urban Population: VP Bank's primary customers are typically located in urban
areas, with access to modern banking facilities.
- Tech-Oriented: Many target customers are digitally inclined, favoring online
banking and mobile apps for their convenience and accessibility.
- Income Level: The bank targets a diverse range of income groups, from average
earners to high-net-worth individuals, offering customized products to suit their financial needs.
- Entrepreneurial Spirit: For corporate and SME customers, VP Bank focuses on
supporting entrepreneurial ventures, providing them with the necessary financial tools to thrive.
This segmentation allows VP Bank to cater to a wide range of customers while
focusing on the specific needs and preferences of each group.
II. Analyze the current status of VPbank's CRM activities:
2.1. Current CRM Strategies at VPBank:
As an effort to enhance customer satisfaction and better managing customer
relationship management activities, VPBank has applied many idea of the CRM. Important tactics consist of:
Improving Customer Experience: Ranging from product consultation to product usage
and other services, VPBank aims at providing the highest level of service and personalisation.
Enhancing Customer Engagement and Increasing Accessibility: through the social
media, customer support services through calls, mobile applications and through websites.
Technology in Analyzing Data applying sophisticated analysis tools to interpret the
need of the clients and their trend analysis to tailor services or sell products to them.
Staff Development and Training: guaranteeing that the staff members who possesses
the necessary know-how to deliver the highest quality customer service to the patrons are taken care of.
a. CRM Strategies Used by VPBank:
VPBank employs several key CRM strategies:
- Strategic CRM: This involves using customer insights to shape the company's
overall strategy. VPBank's approach of creating specialized loan packages, savings
accounts, and promotional offers based on analyzing customer needs falls under this
category. The bank’s focus on targeting specific segments with services like YOLO,
CAKE, and UBank also aligns with strategic CRM.
- Operational CRM: Operational CRM focuses on automating and improving
customer-facing processes. VPBank's use of HubSpot CRM to manage customer
relationships, automate marketing campaigns, and streamline sales processes fits into
this category. Additionally, their deployment of eKYC technology for customer
onboarding, making the process quicker and more efficient, is a good example of 6 about:blank 6/23 12:44 18/1/25 Ggwp - accounting operational CRM.
- Analytical CRM: Analytical CRM involves analyzing customer data to gain insights
and improve decision-making. VPBank uses big data analytics and artificial
intelligence (AI) to forecast trends and customer needs, which is a clear example of analytical CRM
- Collaborative CRM: Collaborative CRM focuses on enhancing communication and
collaboration between the bank and its customers. VPBank’s strong multichannel
communication approach, including its presence on mobile apps, social media, and
customer service hotlines, represents collaborative CRM. VP bank also collaborates
with other enterprises and fintech companies to offer enhanced services and solutions
- Customer retention: Include both negative and possitive strategies, VPBank has
affirmed its position in the Vietnamese banking industry thanks to its smart and
effective customer retention strategies. In addition to the Customer Club program, the
bank also applies many other tactics to build customer loyalty and satisfaction.
b. Detailed Analysis of Each Strategy: Strategic CRM: • Implementation:
To evaluate client data, including transaction history, preferences, and needs, VPBank
employs a CRM system. The bank creates specialized loan packages, savings accounts
with favorable interest rates, and exclusive promotional offers based on this research
of customer needs.VPBank differentiates its services by targeting specific customer
segments. For example, they launched digital-only banks like YOLO, CAKE, and
UBank to cater to different demographics, such as the younger generation and
financially underserved customers. 1. YOLO:
YOLO integrates various lifestyle services such as food delivery, taxi booking,
entertainment, and travel services directly into the banking app. This makes YOLO
more than just a banking app, providing a holistic digital lifestyle experience. YOLO
offers a range of digital banking products including virtual Mastercard, savings
accounts, and loan products. These products are designed to be easily accessible and
convenient for users. The app supports various digital payment methods, including
QR code payments, online transfers, and bill payments. This makes it convenient for
users to manage their finances on the go. Users can apply for a virtual or physical
YOLO Mastercard, which can be used for online and offline purchases worldwide. 2. CAKE:
VPBank partnered with Be Group, the company behind the Be ride-hailing app, to
launch Cake. This collaboration leverages Be Group’s technology and customer base
to offer a seamless digital banking experience. Cake is integrated into the Be ride-
hailing app, making it the first digital bank to appear on a ride-hailing platform in
Vietnam. This integration allows users to access banking services directly from the Be
app. With e-KYC technology, users can open a CAKE account in just 2 minutes. This
quick setup process is designed to attract users who value convenience and speed.
CAKE provides a high-interest savings account with rates up to 3.6% per year, which 7 about:blank 7/23 12:44 18/1/25 Ggwp - accounting
is considerably higher than traditional savings accounts. This feature is attractive to
users looking to maximize their savings. 3. UBANK:
UBank focuses on providing accessible banking solutions to financially underserved
customers, including those in rural areas and low-income groups. UBank includes
initiatives to educate customers about financial management and promote financial
inclusion. This helps customers make informed financial decisions and improve their
financial well-being. The UBank app is designed with a focus on user experience,
offering an intuitive and easy-to-navigate interface. This ensures that users of all ages
and tech-savviness levels can use the app comfortably. Operational CRM: • Implementation:
VPBank deploys integrated CRM systems that work with other banking systems to
gather data from various sources. The system utilizes big data analytics and artificial
intelligence (AI) to forecast trends and customer needs. VPBank also use of HubSpot
CRM to manage customer relationships, automate marketing campaigns, and
streamline sales processes fits into this category: 1. eKYC
- VPBank also utilizes electronic know-your-customer (eKYC) technology to
streamline the onboarding process. This makes it easier and faster for new
customers to open accounts and access banking services
- In 2020, VPBank is the first bank to develop eKYC - online customer
identification.The eKYC process is entirely online, allowing customers to open
accounts and access banking services without visiting a physical branch. This is
particularly beneficial for customers in remote areas.
- Customers can complete the eKYC process in just a few minutes using their
smartphones. This involves taking photos of their identity documents and a selfie
for facial recognition. Moreover, VPBank’s eKYC solution complies with the
regulations set by the State Bank of Vietnam, ensuring that all processes meet legal and security standards. 2. Hubspot CRM
- VPBank uses HubSpot CRM to track and manage leads efficiently. The CRM
system helps in capturing leads from various sources, assigning them to the
appropriate sales representatives, and tracking their progress through the sales
pipeline. The CRM helps in planning, executing, and measuring the
effectiveness of marketing campaigns. This includes tracking metrics such as
open rates, click-through rates, and conversion rate.
- HubSpot CRM automates repetitive tasks such as follow-up emails, meeting
scheduling, and data entry. This allows the sales team to focus more on
building relationships and closing details. VPBank utilizes HubSpot’s email
marketing tools to create, send, and analyze email campaigns. This includes
personalized email content based on customer segmentation and behavior Analytical CRM: • Implementation:
Analytical CRM involves analyzing customer data to gain insights and improve 8 about:blank 8/23 12:44 18/1/25 Ggwp - accounting
decision-making. VPBank uses the Enterprise Data and Analytical Division (EDA).
Towards the goal of turning VPBank into one of the leading banks in the region in
terms of data management and application, enhancing our competitiveness in the
digital era, in June 2023, VPBank launched the Enterprise Data and Analytics Division (EDA), focusing on: -
Developing and governing the next generation cloud-based of Enterprise data platform & data analytics -
Enhancing the application of AI and Machine learning to promote business
performance, optimize management efficiency & minimize operational risks -
Overseeing data strategy, architecture, and advanced analytics project/initiatives
across subsidiaries in VPBank's ecosystem. Collaborative CRM: • Implementation:
Collaborative CRM’s main concern is on the process that involves communication
with the customers of the bank. Through its connecting to mobile apps, social
networks and customer service phone numbers, the organization of VPBank reflects
the concept of multichannel collaboration of CRM. VP bank also partners with
InvestCloud and FWD Insurance company to provide the best services and products. 1. InvestCloud
InvestCloud is a global company specializing in digital platforms for financial
solutions. VPBank has partnered with InvestCloud to develop an innovative Open
Wealth Service platform. Here are the key details:
- Objective: The partnership aims to build a highly personalized wealth
management service delivered via ecosystems and facilitated by the Open Wealth Service platform.
- Features: The platform will bundle VPBank’s in-house and third-party offerings
to create customized financial solutions. This includes services for both
VPBank’s clients and wealthy individuals served by financial intermediaries within the ecosystem.
- Benefits: This collaboration allows VPBank to significantly expand its market
reach without substantial client acquisition costs. The platform’s open service
architecture ensures scalability and flexibility across all of VPBank’s locations1.
- Strategic Alignment: This partnership aligns with VPBank’s Strategy 2026,
which focuses on becoming an international Open Wealth Service provider for
intermediaries and wealthy private clients. 2. FWD Company
FWD is a leading insurance company in Asia. VPBank’s partnership with FWD
focuses on integrating insurance products into its banking services. Here are the key details:
- Objective: The collaboration aims to provide customers with easy access to a
range of insurance products, enhancing the overall customer experience.
- Integrated Services: VPBank offers FWD’s insurance products through its
digital platforms, making it convenient for customers to purchase and manage
their insurance policies alongside their banking services.
- Customer Benefits: This integration allows customers to benefit from 9 about:blank 9/23 12:44 18/1/25 Ggwp - accounting
comprehensive financial solutions, including both banking and insurance services, in one place.
- Strategic Focus: The partnership with FWD supports VPBank’s goal of
providing holistic financial services and improving customer satisfaction
through seamless integration of banking and insurance products.
Customer retention strategies:
VPBank has affirmed its position in the Vietnamese banking industry thanks to its
smart and effective customer retention strategies. Below is a detailed analysis of the
tactics that VPBank has applied: 1. A loyalty scheme
VPBank's Active Customer Retention Strategy: A Typical Loyalty Program
VPBank has been developing a variety of strategies to motivate customers, build
loyalty and create outstanding customer experiences. Here are some highlights
of the bank's loyalty programs:
“The quality of experience at VPBank has also been significantly improved
through the implementation of the Customer Listening Program - VoC Program
(Voice of Customer Program). Accordingly, "customer listening" points are
located at all transaction channels of the bank such as branches, transaction
offices, automatic transaction point system Kiosk - VPBank NEO Express,
website, VPBank NEO/VPBank NeO BIZ app, channels to receive opinions
such as phone, email, Facebook, Zalo, Customer Care Portal... Currently,
VPBank collects and processes nearly 1 million customer opinions each month through this program.”
Ref: “https://www.vpbank.com.vn/tin-tuc/thong-cao-bao-chi/2023/vpbank-nang- cao-trai-nghiem-khach-hang”
1. Understanding and Personalizing Customer Experience: 10 about:blank 10/23 12:44 18/1/25 Ggwp - accounting
Personalize services: Based on customer data, VPBank provides suitable
products, services and incentives for each individual. For example, customers
who frequently use international money transfer services will be prioritized with more competitive fee packages.
Customizable Interface: The Bank has applied AI and Machine Learning
technologies to personalize the mobile application interface, helping customers
easily find the products and services they are interested in.
2. Improve Service Quality Reduce waiting time: VPBank has focused on
minimizing customer waiting time at branches and when contacting the call center.
Improve interaction quality: Staff are professionally trained to provide the best
customer service, solving problems quickly and effectively.
Enhance online transaction channels: VPBank has developed mobile
applications and other online transaction channels so that customers can make
transactions anytime, anywhere.
3. Promotions and Incentives Programs Exclusive offers for loyal customers:
VPBank regularly develops promotional programs, gifts, and fee reductions
exclusively for loyal customers.
Cooperate with partners: The bank cooperates with many partners to provide
attractive incentives such as discounts on shopping, dining, traveling, etc.
Loyalty program: Customers will accumulate points when using the bank's
products and services. Accumulated points can be exchanged for gifts or discounts.
4. Build a Customer Community Organize events: VPBank regularly organizes
events such as seminars and workshops for customers to have the opportunity to
interact and share experiences.
Create a group community: The bank builds groups on social networks so that
customers can interact with each other and with the bank.
5. Invest in Technology Applying AI and Big Data: VPBank uses modern
technologies to analyze customer behavior, predict needs and personalize experiences.
Develop mobile applications: The bank constantly improves mobile applications
to provide new, more convenient features for customers. 2. Customer club
The Customer Club program is one of the important tools that VPBank uses to
build long-term and sustainable relationships with customers. By creating a
community of loyal customers, VPBank not only retains current customers but
also encourages them to introduce more relatives and friends to use the bank's services. 11 about:blank 11/23 12:44 18/1/25 Ggwp - accounting
“Accordingly, from July 2015, spouses of existing Priority Customers will be
designated as Priority Customers without having to maintain a minimum balance
in their checking or savings account and without having to pay any service fees.
In addition, customers will enjoy many special privileges, specifically:
Priority Transactions: receive separate service and no waiting
Priority Care: receive care from VPBank's senior financial consultants
Priority Treatment: Happy Birthday, gratitude events, experience events
organized by VPBank Gold Club exclusively for Priority Customers with many
topics such as: investment, finance, health... Priority Products:
• Receive a free Gold Club Debit MasterCard international debit card with a
high transaction limit of up to 300 million VND
• Receive a free Priority Platinum MasterCard international credit card with an
interest-free period of up to 55 days and a maximum pre-approval limit of 12 about:blank 12/23 12:44 18/1/25 Ggwp - accounting
300,000,000 VND. Pre-approved limit is based on the request of the supplementary cardholder
• Pre-approved unsecured loan, preferential interest rate from 6% to 10%
compared to regular customers and fast disbursement time
• Highest Internet banking transaction limit on the market: 2 billion VND/day
• Premium family care insurance package
• Flexible investment products”
Ref: “https://www.vpbank.com.vn/en/tim-kiem?search=customer+club”
1. Membership classification: VPBank divides customers into different levels
based on transaction levels and service usage time. Each level will enjoy
different benefits, motivating customers to upgrade to higher levels.
2. Diverse incentives: The program offers a series of attractive incentives such as:
Fee reduction: Reduced transaction fees, annual card fees, money transfer fees, etc.
Point accumulation: Customers will accumulate points when using the bank's
products and services. Accumulated points can be exchanged for gifts, shopping vouchers or used to pay bills.
Partner incentives: VPBank cooperates with many partners to provide special
incentives for loyal customers such as discounts on shopping, dining, traveling, etc.
3. Exclusive events and activities: VPBank regularly organizes events, seminars,
and workshops exclusively for loyal customers. This is an opportunity for
customers to interact, connect and experience the bank's premium services.
4. Specialized customer care: Loyal customers will enjoy specialized customer
care services with a team of experienced consultants, ready to support anytime, anywhere.
2.2. Evaluate the current status of VPbank's CRM activities:
a. The CRM strategy of VPBank offers several advantages and strengths over other banks in the industry:
VPBank's CRM (Customer Relationship Management) strategy brings many
competitive advantages and advantages to the bank compared to its competitors in the
same industry. Here are some of the outstanding advantages and advantages:
- Enhanced Customer
Engagement: Through the Voice of Customer (VoC) program,
VPBank has a better ability to listen to and understand customer needs compared to
competitors. This helps the bank build stronger relationships with customers, increase
loyalty, and reduce churn rates. According to this program, "Voice of Customer"
touchpoints are placed at all of the bank's transaction channels, including branches,
transaction offices, automated transaction kiosks - VPBank NEO Express, website,
VPBank NEO/VPBank NEO BIZ app, and feedback channels such as phone, email,
Facebook, Zalo, and the Customer Care Portal. Currently, VPBank collects and 13 about:blank 13/23 12:44 18/1/25 Ggwp - accounting
processes nearly 1 million customer feedbacks each month through this program.
- Optimized Multi-Channel Customer Experience: VPBank synchronizes the
customer experience across all transaction channels (branches, VPBank NEO, digital
channels, etc.). This creates convenience and consistency, making it easier for
customers to use services and feel more satisfied.
- Advanced Technology for Automation and Personalized Services: VPBank is also
the first bank to implement the VoC Solution technology, which automates the process
of collecting customer feedback and reduces processing time by 90%, aiming to
synchronize the customer experience across all transaction channels. In the future,
customer feedback processing will be integrated with Artificial Intelligence (AI),
enabling VPBank to proactively evaluate, understand, and predict each customer's
behavior and needs to create the most personalized experiences.
- Development of Loyalty Programs and Special Offers: With data collected from
CRM, VPBank can develop loyalty programs and tailored offers for different customer
segments, enhancing customer retention and strengthening long-term relationships.
- Improved Operational Efficiency and Cost Reduction: Automating CRM processes
helps VPBank reduce operational costs, optimize resources, and improve employee
productivity, allowing the bank to focus on high-value activities.
- Proactive in Competitive Strategy and Product Development: Through analyzing
customer data and feedback from the VoC program, VPBank can quickly identify
market trends and adjust product and service strategies accordingly, maintaining its
competitiveness in the banking sector.
Overall, VPBank's CRM strategy helps the bank enhance operational efficiency,
increase customer satisfaction and loyalty, and create a solid competitive advantage
over other banks in the industry.
b. Some indicators directly affect VP bank's CRM performance
Through VPbank's financial statements for the past 4 years, these are the most
important indicators that directly affect VPbank's CRM activities: Net Profit: o
Impact on Customer Retention and Acquisition: A higher net profit can
indicate successful CRM strategies that enhance customer retention and
acquisition. Effective CRM can lead to increased customer satisfaction,
loyalty, and repeat business, all of which contribute to higher net profits. o
Cost Efficiency: By analyzing net profit, VPBank can assess whether their
CRM initiatives are cost-effective. If CRM costs are high but net profit
remains low, it may indicate inefficiencies in their CRM processes.The
increase in Net Profit during the initial years could suggest that VP Bank's
CRM activities, such as customer retention strategies, cross-selling, and
upselling, were effective. The decline in 2023 may signal the need for a
renewed focus on CRM, especially on retaining high-value customers and
improving customer satisfaction. o
This is VP bank's Net Profit from 2020 to 2023 (Million VNĐ) 2020 2021 2022 2023 14 about:blank 14/23 12:44 18/1/25 Ggwp - accounting
10,413,760 11,477,170 16,908,807 8,494,171 Net Profit 2023 2020 18% 22% 2021 2022 24% 36% 2020 2021 2022 2023 Operating Expense: o
Cost Management: High operating expenses can indicate increased spending
on CRM tools, customer service, and marketing efforts. Monitoring these
expenses helps VPBank ensure that CRM initiatives are not overly costly and are delivering value. o
Resource Allocation: By evaluating operating expenses, VPBank can
determine if they are allocating resources effectively to different CRM
activities. This can help in optimizing spending and improving overall CRM
performance. The bank needs to ensure that these expenses are translating into
tangible customer benefits, such as improved service quality and customer
satisfaction. The slight decrease in 2023 could reflect attempts to optimize
spending, but further efficiency improvements might be necessary o
This is VP bank's Operating Expense from 2020 to 2023 (Million VNĐ) 2020 2021 2022 2023
11,392,021 10,718,937 14,115,731 13,941,218 15 about:blank 15/23 12:44 18/1/25 Ggwp - accounting Operating expense 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 - Operating expense 2020 2021 2022 2023 Operating Income: o
Revenue Generation: Operating income reflects the bank’s earnings from core
operations, excluding non-operating income and expenses. Effective CRM
strategies should contribute to higher operating income by driving revenue
growth through improved customer relationships and increased sales.
Increasing Operating Income typically reflects successful CRM initiatives, as it
indicates higher customer engagement and loyalty o
Operational Efficiency: Analyzing operating income can help VPBank
identify areas where CRM strategies are enhancing operational efficiency,
leading to better financial performance. Increasing Operating Income typically
reflects successful CRM initiatives, as it indicates higher customer engagement and loyalty o
This is VP bank's Operating Income from 2020 to 2023 (Million VNĐ) 2020 2021 2022 2023
39,340,321 44,301,475 57,797,089 49,739,488 16 about:blank 16/23 12:44 18/1/25 Ggwp - accounting Operating income(sales) 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 - Operating income 2020 2021 2022 2023
Credit Loss Provision: o
Risk Management: The provision for credit losses represents potential losses
from delinquent or defaulted loans. Effective CRM can help in better
understanding customer creditworthiness and managing credit risk, thereby
reducing the need for high credit loss provisions. o
Customer Segmentation: By analyzing credit loss provisions, VPBank can
identify segments of customers that pose higher credit risks. This information
can be used to tailor CRM strategies to mitigate risks and improve customer portfolio quality. o
This is VP bank's Credit Loss Provision from 2020 to 2023 (Million VNĐ) 2020 2021 2022 2023
14,621,638 19,218,768 22,461,226 24,994,374 17 about:blank 17/23 12:44 18/1/25 Ggwp - accounting Credit Loss Provision 2020 18% 2023 31% 2021 24% 2022 28% 2020 2021 2022 2023
c. The remaining limitations in VPBank's CRM strategy include:
While VPBank's CRM strategy brings many advantages and values, there are still
some limitations that need to be considered and improved to optimize effectiveness.
Here are some of the remaining limitations in VPBank's CRM strategy:
- Data Accuracy and Analysis: Although VPBank collects a lot of customer data, the
accuracy and consistency of this data are not always guaranteed. If the data is not
properly cleaned and synchronized, the analysis results could lead to incorrect decisions.
- Complex System Integration: With the deployment of multiple channels and
different technologies, integrating CRM systems to ensure seamless and consistent
customer information can be challenging. This may affect work efficiency and the customer experience.
- High Initial Investment Costs: Building and maintaining a comprehensive CRM
system requires significant investment in technology, staff training, and operational
management. This can create financial pressure for the bank and requires a long time to see tangible benefits.
- Limited Interaction and Response Capabilities: Even with automation and AI
systems in place, the ability to quickly respond to complex customer requests or
complaints can still be limited, especially in situations that require human intervention.
- Dependency on Tec :
hnology Over-reliance on technology in CRM can pose risks if
technical issues occur, or when flexibility is needed to adjust the CRM strategy over time.
- Lack of Deep Personalization: Although VPBank has applied AI to personalize
customer experiences, there is still room for deeper development. Currently, some
customer segments may feel that the programs and services are not personalized
enough or do not fully meet their specific needs.
- Challenges in Training and Implementation: Training staff to use the CRM system
effectively and consistently can be challenging, especially with a large workforce and
complex processes in the bank. This can lead to inconsistencies in customer approach and care. 18 about:blank 18/23 12:44 18/1/25 Ggwp - accounting
These limitations need to be addressed by VPBank to ensure that the CRM strategy not
only maintains current advantages but also continues to develop and enhance competitiveness in the market.
III. Solution and proposal for Vpbank’s CRM activities:
3.1 Solutions for VP Bank's CRM activities in the future:
As VP Bank continues to evolve within the competitive landscape of the banking
sector, the importance of a robust Customer Relationship Management (CRM) strategy
cannot be overstated. CRM serves as the foundation for nurturing customer loyalty,
increasing profitability, and maintaining a customer-centric focus in all operations.
While VP Bank has made significant strides in its current CRM initiatives, there are
several areas for enhancement that can support its long-term goals. By addressing key
elements within the CRM framework—CRM vision, customer orientation culture,
organizational process alignment, data and technology support, and CRM
implementation—VP Bank can refine its approach and achieve greater success in the future.
a. Strengthening the CRM Vision:
- A well-defined CRM vision provides strategic direction, setting the tone for how an
organization will manage and cultivate relationships with its customers. While VP
Bank has demonstrated a commitment to customer satisfaction, a more explicit and
forward-thinking CRM vision can drive sustained growth. The CRM vision should
clearly articulate how VP Bank envisions its customer relationships evolving over
time, while also aligning with its larger corporate mission of becoming a leading financial institution.
- Solution: VP Bank can set a long-term CRM vision that emphasizes the seamless
integration of personalized services and digital innovation. This vision should project
an image of VP Bank as a pioneer in customer experience, utilizing data-driven
insights to anticipate customer needs. A potential CRM vision statement could be: "By
2030, VP Bank aims to be the preferred banking partner for all customer segments,
offering personalized, proactive financial solutions that simplify lives and foster
enduring trust." Such a vision would inspire the organization to continually invest in
technologies that provide individualized services, including real-time financial advice,
predictive loan offers, or tailored wealth management solutions.
For example, VP Bank could implement personalized financial health reports for
customers, generated using data analytics tools. These reports could suggest specific
actions based on each customer’s unique financial behavior—whether that involves
refinancing a loan, adjusting a savings strategy, or recommending investment
opportunities. By proactively delivering value in this way, VP Bank will strengthen its
position as a trusted advisor, not just a transactional institution.
b. Fostering a Culture of Customer Orientation:
- While VP Bank places significant emphasis on customer-centric initiatives, a
deeper cultural alignment is necessary to ensure that every employee embodies a
customer-first mentality. Fostering a strong culture of customer orientation is not only
about providing good service but also about making customers feel genuinely
understood and valued. In today's competitive banking environment, customers expect 19 about:blank 19/23 12:44 18/1/25 Ggwp - accounting
personalized experiences at every touchpoint. Therefore, customer orientation must
extend beyond front-line staff to encompass the entire organization, from leadership to back-office functions.
- Solution: To cultivate a stronger customer orientation culture, VP Bank should
implement continuous, organization-wide training programs focused on empathy,
active listening, and personalized problem-solving. These programs could be
supplemented with experiential learning, such as role-playing scenarios that allow
employees to navigate complex customer interactions. Additionally, establishing a
rewards and recognition program for employees who consistently deliver exceptional
customer experiences will incentivize and reinforce positive behavior across the organization.
- For instance, a Customer Champion Award could be introduced, recognizing
employees who receive consistently high customer satisfaction scores. Publicly
acknowledging and celebrating these successes will help build a culture where
employees are motivated to exceed customer expectations. Furthermore, creating a
system where customer feedback is looped back into staff development plans can help
employees continuously improve and adapt their service approaches.
c. Aligning Organizational Processes:
- One of the key challenges in CRM is ensuring that all organizational processes are
aligned to support the bank’s overarching customer relationship goals. Inconsistencies
in internal processes can lead to delays, inefficiencies, and a fragmented customer
experience. For VP Bank, optimizing process alignment is critical to streamlining
operations, reducing service times, and ensuring that customers receive a consistent
level of service across all channels.
- Solution: VP Bank should undertake a thorough review of its existing processes to
identify bottlenecks and inefficiencies that hinder smooth customer interactions.
Automating routine, repetitive tasks and workflows will free up employees to focus on
more complex and high-value customer interactions. For example, automating the
approval process for routine transactions, such as loan applications or account
upgrades, can reduce customer wait times and improve satisfaction. By integrating
CRM systems with back-office operations, VP Bank can ensure that all departments
have real-time access to customer data, allowing for quicker, more informed decision- making.
- Additionally, VP Bank can implement a centralized case management system that
tracks all customer interactions, ensuring that issues are escalated and resolved in a
timely manner. For instance, if a customer raises a complaint about an overdraft fee,
the system should automatically route the issue to the appropriate team, with
notifications sent to the customer at each stage of resolution. This kind of process
optimization not only improves efficiency but also enhances the overall customer
experience by making interactions more transparent and responsive.
d. Leveraging Data and Technology for Personalized CRM:
- With increasing digitalization in the banking industry, VP Bank has an
opportunity to leverage data and technology to offer more personalized and relevant
customer experiences. Customers today expect their banks to understand their needs
and preferences, delivering solutions tailored specifically to them. VP Bank’s current 20 about:blank 20/23